Comprehensive Notes on Consumer Rights and the Consumer Movement

Introduction to Consumer Rights and Market Context

• Conceptual Framework: This study guide discusses consumer rights within the context of market operations in India, emphasizing unequal market situations and poor enforcement of regulations.
• Need for Sensitization: There is a critical need to encourage learners to participate actively in the consumer movement and to be aware of their rights as well-informed consumers.
• Learning Resources: Authenticated sources include administrative websites like https://consumeraffairs.nic.in (Ministry of Consumer Affairs) and non-governmental organizations like www.cuts-international.org (Consumer Unity & Trust Society, active for 40 years).
• Role of Legal Institutions: Case histories demonstrate how consumers are exploited and how legal institutions provide compensation and uphold rights.

The Consumer in the Marketplace

• Dual Participation: Individuals participate in the market as both producers (working in agriculture, industry, or services) and as consumers (purchasing final goods and services).
• Requirement for Rules: Just as rules protect workers in the unorganised sector or protect borrowers from high interest rates in the informal sector, regulations are essential to protect consumers.
• Moneylender Exploitation Examples:
  • Forcing producers to sell produce at low rates in exchange for timely loans.
  • Forcing small farmers (e.g., Swapna) to sell land to repay debt.
• Consumer Vulnerability: Individual consumers are often in a weak position. Sellers frequently shift responsibility to the buyer, using the logic: "If you didn't like what you bought, please go elsewhere."
• Forms of Marketplace Exploitation:
  • Unfair trade practices like weighing less than the standard amount.
  • Adding hidden charges not mentioned beforehand.
  • Selling adulterated or defective goods.
• Market Imbalance: Markets fail to work fairly when producers are few and powerful (large, wealthy companies) while consumers are scattered and purchase in small amounts.
• Manipulation via Media: Large companies use false information to attract consumers.
  • Case Example 1: Powder Milk: A company claimed for years that powdered baby milk was more scientific and better than mother's milk. It took years of struggle to force them to admit the claim was false.
  • Case Example 2: Tobacco: Cigarette manufacturing companies fought long court battles before accepting that tobacco causes cancer.

The Consumer Movement

• Origin as a Social Force: In India, the movement arose to protect consumers against unethical trade practices.
• Historical Timeline:
  • 1960s: Birth of the organized consumer movement due to rampant food shortages, hoarding, black marketing, and food/edible oil adulteration.
  • 1970s: Groups primarily engaged in writing articles, holding exhibitions, and monitoring malpractices in ration shops and road transport.
• International Framework: In 1985, the United Nations adopted the UN Guidelines for Consumer Protection. This led to Consumers International, an umbrella body of over $200$ member organisations from over $100$ countries.
• Indian Legislation: The Indian government enacted the Consumer Protection Act 1986 (popularly known as COPRA). This Act was significantly amended in 2019.

Core Consumer Rights

Right to Safety

• Definition: The right to be protected against the marketing of goods and services hazardous to life and property.
• Case Study: Reji Mathew: Reji, a healthy boy in Class IX, underwent a tonsillectomy at a private clinic in Kerala. Due to improper anaesthesia administered by the ENT surgeon and staff, he suffered brain abnormalities and was crippled for life.
• Redressal for Reji: His father filed for $Rs\,5,00,000$ in compensation. The State Consumer Disputes Redressal Commission dismissed the case for lack of evidence. However, the National Consumer Disputes Redressal Commission in New Delhi held the hospital responsible for medical negligence and ordered the payment of compensation.
• Commercial Examples: Pressure cookers require high-quality safety valves to prevent accidents; LPG cylinders must follow strict safety rules.

Right to be Informed

• Packaging Requirements: Manufacturers must display particulars such as ingredients, price, batch number, date of manufacture, expiry date, and address.
• Specific Goods:
  • Medicines: Must include directions for use and side-effect risks.
  • Garments: Must include washing instructions.
• Maximum Retail Price (MRP): Protests can be made if a seller charges more than the printed price; consumers can also bargain for prices below the MRP.
• Right to Information (RTI) Act 2005: Enacted in October 2005, it ensures citizens get information about government department functions.
• Case Study: Amritha: An engineering graduate did not receive job interview results from a government department. She filed an RTI application and was informed of the reasons for the delay, eventually receiving her appointment letter.

Right to Choose

• Definition: Any consumer receiving a service has the right to choose whether to continue receiving it, regardless of age, gender, or nature of service.
• Denial of Choice Examples: Shopkeepers forcing a buyer to purchase a toothbrush with toothpaste, or gas dealers insisting customers buy a stove with a new connection.
• Case Study: Abirami: A student in New Delhi paid a lumpsum fee of $Rs\,61,020$ for a two-year coaching course. She left after one year due to poor quality. The District Consumer Disputes Redressal Commission ordered a refund of $Rs\,28,000$. The State Commission upheld this, fined the institute $Rs\,25,000$ for a frivolous appeal, and ordered $Rs\,7,000$ for compensation and litigation costs.
• Policy Outcome: The commission restrained educational institutions from charging multi-year fees in advance at one go.

Redressal Mechanism and COPRA

• Redressal Hierarchy: A three-tier quasi-judicial machinery exists:
  1. District Consumer Disputes Redressal Commission: Handles cases with claims up to $Rs\,1\,\text{crore}$.
  2. State Consumer Disputes Redressal Commission: Handles cases between $Rs\,1\,\text{crore}$ and $Rs\,10\,\text{crore}$.
  3. National Consumer Disputes Redressal Commission: Handles cases exceeding $Rs\,10\,\text{crore}$.
• Consumer Protection Councils: Locally known as consumer forums; they guide consumers in filing cases and sometimes represent them.
• 2019 Amendments:
  • Inclusion of internet-based buying (e-commerce).
  • Strict liability for service deficiency or defective products (penalties/imprisonment).
  • Encouragement of Mediators (neutral intermediaries) at all three tiers for dispute settlement.

Quality Standards and Certification

• Logos for Consumer Assurance:
  • ISI: Industrial goods.
  • Agmark: Agricultural commodities (edible oil, cereals).
  • Hallmark: Jewelry.
  • +F: Food fortification (adding key nutrients to staples).
• Mandatory Certification: Required for products affecting health/safety (LPG cylinders, food additives, cement, packaged water).
• Bureau of Indian Standards (BIS): The agency that develops these standards.

Successes and Challenges

• National Consumers’ Day: Observed in India on 24 December (the date COPRA was enacted in 1986).
• Growth: Over $2000$ consumer groups exist in India, though only $50$-$60$ are well-organized.
• Current Obstacles:
  • The process is cumbersome, expensive, and time-consuming.
  • Missing cash memos often lead to lack of evidence.
  • Enforcement of rules in unorganized sectors is weak.
  • Consumer awareness is spreading slowly.

Questions & Discussion

• Ways of Exploitation: Trader malpractices (defective goods, weights), false claims in ads, charging above MRP.
• Role of Government: Enforcing laws like COPRA/RTI, mandatory certification (ISI/Agmark), and maintaining Redressal Commissions.
• Rights Categories:
  • Right to Safety: e.g., protection from electric shocks (Lata's electric iron case).
  • Right to Redressal: e.g., filing a case against MTNL/BSNL/TATA for service dissatisfaction.
  • Right to Information: scanning pack particulars; advise on expired medicine.
  • Right to Choice: inability to switch cable operators.
• Exercise Matchings:
  • Availing details of ingredients = Right to Information.
  • Agmark = Certification of edible oil and cereals.
  • Accident due to faulty scooter engine = Right to Safety.
  • District Consumer Commission = Dealing with consumer cases.
  • Food fortification = Addition of key nutrients to staple foods (+F).
  • Consumers International = Global level institution for consumer welfare.
  • Bureau of Indian Standards = Agency that develops standards.

Appendix: Body Mass Index (BMI) for Adolescents (Ages 14-18)

• Malnourished (Underweight) Thresholds:
  • Girls (14 years, 0 months): Less than $15.4$.
  • Boys (14 years, 0 months): Less than $15.5$.
• Normal BMI Ranges:
  • Girls (18 years, 0 months): $16.4$ to $29.4$.
  • Boys (18 years, 0 months): $17.3$ to $29.2$.
• Malnourished (Obesity) Thresholds:
  • Girls (18 years, 0 months): More than $29.5$.
  • Boys (18 years, 0 months): More than $29.2$.
• Source: Based on charts published by the World Health Organization (WHO).